\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 66 Anker Innovations Technology Co.Ltd(300866) )
Event: on April 11, the company released its annual report for 2021. During the reporting period, the company achieved revenue of 12.574 billion yuan / year-on-year + 34.45%, net profit attributable to parent company of 982 million yuan / year-on-year + 14.7%, and net profit not attributable to parent company of 708 million yuan / year-on-year – 2.69%; From a single quarter, the company achieved an operating revenue of 4.149 billion yuan / year-on-year increase of 24.44% in the fourth quarter, a net profit attributable to the parent of 336 million yuan / year-on-year + 4.03%, deducting a net profit not attributable to the parent of 210 million yuan / year-on-year – 15.09%, and the overall performance was in line with expectations.
Category channels expanded and revenue increased rapidly. During the reporting period, the company achieved good growth in three categories: 1) the charging category / intelligent innovation category / wireless audio category achieved an operating revenue of 5.552 billion yuan / 4.104 billion yuan / 2.852 billion yuan respectively, with a year-on-year growth rate of 34.00% / 34.13% / 34.44%. It launched a number of new products including ankernano II, maggo, eufyclean, eufysecurity, nebula, soundcore liberty air 2, and will continue to expand new categories such as smart office and continue product diversification; 2) in consolidating mature markets, we continue to expand new markets at home and abroad. The US / Europe / Japan / Middle East / Chinese mainland achieved a revenue of 6 billion 340 million yuan /25.42 billion yuan, /17.32 billion yuan /5.61 billion yuan /4.19 billion yuan, an increase of 26.33%/39.44%/13.77%/28.46%/194.47% compared with the same period last year, and the growth rate of the Australian Leah market was over 30%. 3) Continue to expand Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels, rely on Amazon to enter emerging markets, and make breakthroughs in multiple third-party e-commerce platforms and offline expansion. During the reporting period, Amazon / other e-commerce platforms / independent stations / offline achieved revenue of 6.873 billion yuan / 733 million yuan / 394 million yuan / 4574 million yuan respectively, with a year-on-year increase of 19.04% / 92.47% / 83.57% / 53.33%. Overall, the company’s revenue is growing rapidly, category channels continue to expand, and its dependence on a single platform is expected to be reduced.
Under the epidemic, the cost of raw materials and freight increased, and the platform cost rate decreased. 1) At the gross profit margin side, the company had financial caliber adjustment during the reporting period. After tracing the adjustment, the gross profit margin increased from -3.55pct to 35.72% year-on-year, or due to the increase of procurement cost and freight; 2) On the expense side, the company’s sales expense rate / management expense rate / financial expense rate increased from -4.59pct / – 0.05pct / + 0.12pct to 19.44% / 2.98% / 6.19% year-on-year respectively, and the total expense rate during the period increased from -4.51pct to 28.61% year-on-year, mainly due to caliber adjustment; In terms of breakdown, the rate of publicity / labor cost has increased, and the rate of platform cost has decreased. Affected by industrial factors such as the increase of raw materials and freight costs, the net interest rate deducted from non parent company during the reporting period was about 5.6%, and the profitability decreased.
The optimization of cash flow management is obvious, and the R & D investment remains at a high level. 1) By the end of the reporting period, the company’s inventory totaled 2.061 billion yuan / year-on-year + 24.32%, which was due to business growth; 2) The net operating cash flow was 449 million yuan / year-on-year + 139.11%, mainly due to the optimization of cash flow management; 3) During the reporting period, the company’s R & D investment reached 778 million yuan, accounting for 6.19% of revenue, an increase of 0.12% compared with 2020 and an increase for three consecutive years; 4) Continuously improve the organizational ability, optimize the business unit with the general manager of the product line as the core, and promote product R & D. the proportion of R & D personnel in the number of employees is 45.44%, which continues to maintain a high level.
Investment suggestion: the company is the benchmark of China’s overseas brand. Reviewing the company’s history, it has not only achieved the core competitiveness of existing products / brands / channels, but also confirmed the strategic vision of the management; The existing foundation accumulates and builds the cornerstone. In the face of a broad market, it continues to iterate and has great potential. During the reporting period, the company’s revenue grew steadily, category channels expanded, and the demand for a single platform decreased; Affected by short-term factors such as freight and raw materials, the profitability decreased year-on-year. We are firmly optimistic about the growth of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2023 will be 1.130 billion yuan / 1.370 billion yuan respectively, and the EPS will be 2.78 yuan / share and 3.37 yuan / share respectively. The corresponding valuation of the current stock price is 22 / 18 times PE respectively, maintaining the “buy” rating and the target price is 83 yuan.
Risk warning: product R & D risk or sub category development is seriously less than expected; The bargaining power at the channel end is greatly weakened or the cost is greatly increased; Risk of epidemic impact outside China; Significant changes in talent and organization.
